Uman NUH | today: 05/22/2019

Developing export diversification strategy for agri-food products

Author(s) Shkolnyi O.O., Doctor of Economics Sciences, , Uman National University of Horticulture, Ukraine
Category Economics
year 2018 issue Випуск №93. Частина 2
pages 168-177 index UDK 338.433:339.564
DOI 10.31395/2415-8240-2018-93-2-168-177 (Link)
Abstract The need in supporting a positive balance of payments necessitates the expansion of the supply of goods that are in the demand on the external markets and can guarantee global competitive advantage. Under conditions of low level of government support, the agrarian sector of Ukraine increases its share in the export markets (in 2016 it reached 45.4%). However, competitive actions of the participants of the world market require the improvements in methods of global strategic positioning by attracting mechanisms of diversification. The purpose of the article is to analyze export activities and determine the directions for the formation of a strategy for diversifying exports of agri-food products. The systems and synergetic approach is used as a theoretical and methodological basis for the research. Abstract, logical and empirical methods were used in the process of highlighting the problems of developing strategies for diversifying exports of agri-food products. Based on the results of the study, it was concluded that the share of agri-food products in Ukraine's exports is higher than the average of the global market. The developed countries attach great importance to export activities supported by strategic resources. Among the factors influencing the export potential of enterprises can be identified internal and external factors. Under the dynamism of the world markets it is necessary to constantly monitor it, highlight the main factors and apply methods of strategic global positioning by enterprises of the agrarian sector of the country's economy. Increasing the level of global competitiveness of the agrarian sphere of the Ukrainian economy is possible due to export diversification, in particular, horizontal, vertical and combined. On the basis of analyzing the dynamics of the level of the regional and geographical export diversification coefficient, the tendency of a decrease in the level of this indicator can be identified which necessitates the involvement of regulatory mechanisms. Participation of Ukraine in the European market makes it necessary to adapt quickly to the new business conditions, in particular, ensuring quality parameters of products in accordance with standards and taking into account the characteristics of consumer demand. Geographical indications reflect products with specific qualitative characteristics. The identification of such goods is determined by their geographical origin and is formed under the influence of interaction of socio-economic and technological factors. Expanding the practice of applying geographical indications in the export activities will help to increase the level of diversification of export-oriented products and to ensure the entrance to new marketing segments of the world market. According to the results of the study, it is necessary to reflect the interests of domestic agrarian entrepreneurs in the regulatory mechanisms of agrarian policy and provide necessary conditions for creating value chains. The increasing level of competitiveness for entrepreneurs in agrarian business on export markets is possible due to combining the low-cost strategy with the export diversification strategy.
Key words agri-food goods, export, low cost strategy, diversification strategy, global competitive advantage
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